Public Cloud - South America

South America

Revenue in the Public Cloud market is projected to reach US$13.60bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$3.81bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.76%, resulting in a market volume of US$32.13bn by 2029.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

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Analyst Opinion

The Public Cloud market in South America is experiencing steady growth, driven by factors such as increasing adoption of cloud technologies, rising demand for online services, and the convenience offered by cloud solutions. The market is expected to maintain an average growth rate, influenced by factors such as government initiatives, digital transformation efforts, and the increasing availability of affordable cloud services. The region's sub-markets for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service are all contributing to the overall growth of the Public Cloud market in South America.

Customer preferences: The increasing adoption of remote work and virtual collaboration tools in South America has resulted in a growing demand for cloud-based solutions. With the rise of digitalization and the need for efficient remote operations, businesses are turning to public cloud services to optimize their workflows and enhance productivity. This trend is further supported by the region's young and tech-savvy population, who prioritize convenience and flexibility in their work and personal lives.

Trends in the market: In South America, the Public Cloud Market is experiencing a surge in adoption as businesses shift towards digitalization and remote work. This trend is driven by the increasing demand for cloud-based solutions, such as virtual desktops and collaboration tools, to support remote work and business continuity. This trajectory is expected to continue as more companies recognize the benefits of cloud computing, including flexibility, scalability, and cost-efficiency. For industry stakeholders, this trend presents opportunities for growth and innovation, but also poses challenges in terms of security and compliance. As such, there is a need for robust and reliable cloud solutions to meet the evolving needs of businesses in South America.

Local special circumstances: In South America, the Public Cloud market is driven by the region's strong economic growth and increasing demand for digital transformation. The market is also influenced by factors such as government regulations and cultural diversity. For example, in Brazil, the government has implemented policies to promote the adoption of cloud computing, while in Argentina, the market is driven by the country's large pool of skilled IT professionals. Furthermore, the unique geography of the region, with its diverse climate and terrain, presents challenges and opportunities for cloud service providers. Overall, these local factors contribute to the dynamic growth of the Public Cloud market in South America.

Underlying macroeconomic factors: The Public Cloud Market in South America is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. The region's economic growth and stability play a significant role in driving demand for public cloud services, as businesses and organizations seek to increase efficiency, reduce costs, and improve their competitiveness in the global market. Additionally, government initiatives to promote technology adoption and digital transformation are creating a favorable environment for the growth of the public cloud market in South America. Moreover, the increasing demand for data storage, processing, and analysis, driven by the rise of data-driven business models, is further fueling the growth of the public cloud market in the region.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.